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You know that r1=5%, f2=6%, f3=7% (the subscript indicates the year). You also know that the price of a 4 year zero-coupon bond is $750
You know that r1=5%, f2=6%, f3=7% (the subscript indicates the year). You also know that the price of a 4 year zero-coupon bond is $750 (face value is $1000). What is the price of a 5% annual coupon bond with 4 year maturity (assume face value of $1000)?
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